Petrobras: Fuel supplies unaffected by union strike

The union group started a 24-hour "warning" strike at midnight, with workers declining to change shifts at refineries, terminals and inland oil fields. Workers at offshore platforms will perform only routine services, a spokeswoman said. FUP negotiates on behalf of 12 affiliated unions across Brazil.

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By JEFF FICK

RIO DE JANEIRO--Brazilian state-run energy giant Petroleo
Brasileiro, or Petrobras, said Wednesday that crude-oil
production and fuel supplies haven't been affected by an ongoing workers' strike.

The companys operational activities are working
normally, the company said.

The Brazilian Oil Workers Federation, or FUP, started a
24-hour "warning" strike at midnight, with workers declining to
change shifts at refineries, terminals and inland oil fields.
Workers at offshore platforms will perform only routine
services, a spokeswoman said.

FUP is an umbrella union that negotiates on behalf of 12
affiliated unions across Brazil. It represents nearly 60,000 of
Petrobras's 75,000 employees.

Petrobras awaits the return of unions to the
negotiation table, and [the company] expects to reach a
deal, Petrobras said.

Strikes such as Wednesdays typically involve slowdowns
and work-to-rule actions and have a limited effect on
operations because of their short duration.

The work action, however, comes as Petrobras struggles to
boost crude-oil output amid ongoing maintenance at offshore platforms.
The company also registered its first quarterly loss in more
than a decade in the second quarter because of heavy fuel
imports and a weaker Brazilian real.

Workers were protesting Petrobrass latest salary
offer, the union spokeswoman said. Petrobras said the company
last week offered a 6.5% raise and a one-time bonus
payment.

The union's directors, meanwhile, will meet Friday to
discuss possible dates for a larger strike.

The last major strike at Petrobras took place in July 2008,
when oil workers walked off the job for five days to protest
work issues and profit-sharing proposals.

The strike cost Petrobras about 63,000 bpd of crude-oil
production.

Dow Jones Newswires

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